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Green Growth, Green Profit by Roland Berger Strategy Consultants

This article was inspired by Roland Berger's Green Growth, Green Profit . If you enjoy this article then consider purchasing or borrowing the book.

How to Make Money by Going Green

“The fight for [a] future share of the green technology sector will create a win-win situation for the planet and for business.”

In the 21st century, going green is a necessary step businesses will take to cut waste and maximize efficiency. With a global market worth $2.1 trillion by the end of 2010 and set to double by 2020, green business offers you the chance to expand your company and tap into new sources of revenue.

Estimates indicate that the global population will reach nine billion by the year 2050, so sanitation and energy will become even bigger areas of interest in the future. Desalination plants can address the lack of drinkable water around the world, and electric vehicles can meet the increasing demand for transportation.

If global warming continues, less water will be available over time for agriculture, leading to food shortages as well. Renewable energy sources and technology designed to reduce carbon dioxide emissions can prevent this developing problem.

Over half of the world’s population lives in urban settings of some kind, and the expansion of “megacities” evinces this. Companies can take advantage of the need for green forms of construction and transportation.

In Germany, the US and China, governments are funding electric vehicle research, as “e-mobility” is increasingly emphasized around the world. In order for the electric vehicle industry to succeed, states will have to support proper electric power grids.

Numerous alternatives to fossil fuel are currently being researched. From hydroelectric power to biomass, renewable energy will provide much of nations’ power in the future. California has already achieved “grid parity” through solar power.

By releasing green products, you can give a better reputation to the quality of the goods you sell. Every stage of your product’s lifestyle should have a green policy. For example, Johnson Controls used coconut fiber and latex in auto seat cushions rather than petroleum-based polyurethane, demonstrating an eco-friendly commitment to even the small details.

Currently, Germany is the “number one green technology country in the world.” With an annual growth rate of 8%, this nation’s strong science sector promises a future for green technology. Emphasizing nuclear power, France also spearheads innovations in waste and water management. Spain and Portugal are the world’s major players in the wind industry.

How does the US compare to Europe? Using 20% of the world’s energy, more than any other nation, America has started to try to catch up with the EU’s emphasis on going green. Dedicating $80 billion to green technology, the federal government will need to change policies to fully implement its spending. Venture capitalists must realize that states may ignore Congress and use their own systems. Follow the money and take advantage of profitable green ventures.

Implementing green technology into your business isn’t just forward thinking, it’s practically necessary for success in the 21st century. By demonstrating a commitment to eco-friendly products, you will keep customers’ business in a world where going green is the moral choice.